Markel International posts 116% full-year COR

London market (re)insurer Markel International has posted a full-year 2011 combined ratio of 116% - 21 percentage points worse than 2010’s 95%.

As with other (re)insurers writing global business, Markel International’s results were affected by the large number of natural catastrophes in 2011.

The company incurred $123m (£78m) of catastrophe losses during the year, which added 18 percentage points to its combined ratio (2010: $17m/3 points).

Markel International’s gross written premiums increased 16% to $825m (2010: $709m). This was largely thanks to the company’s Canadian operation, Elliot Special Risks, a former managing general agency that Markel International bought in late 2009 and converted to a risk-bearing insurer.

Markel’s premium income also benefited from improved pricing and organic growth in the company’s marine and energy division.

“Against a difficult underwriting background we are pleased with the premium growth we achieved in 2011,” said Markel International finance director Andy Davies in a statement. “The significant losses reported by the insurance industry are having a positive effect on pricing and with our disciplined underwriting and strong balance sheet we are in an excellent position to capitalise on opportunities as they arise.”

Davies added that the catastrophe losses incurred by his company were within its risk appetite and presented less than 4% of US parent company Markel Corporation’s capital.